US home prices continued to fall in December: Report

ISTANBUL

Home prices continued to fall across the US in December, according to a report Tuesday by the S&P Dow Jones Indices (S&P DJI).

The S&P CoreLogic Case-Shiller index, which covers all nine US census divisions, posted an annual gain of 5.8%.

The index, however, showed a slowdown from a 7.6% increase in November.

"The 10-City Composite annual increase came in at 4.4%, down from 6.3% in the previous month. The 20-City Composite posted a 4.6% year-over-year gain, down from 6.8% in the previous month," said the report.

S&P DJI Managing Director Craig Lazzara said the cooling started in June and continued through the end of 2022.

"The prospect of stable, or higher, interest rates means that mortgage financing remains a headwind for home prices, while economic weakness, including the possibility of a recession, may also constrain potential buyers," he said.

"Given these prospects for a challenging macroeconomic environment, home prices may well continue to weaken," he added.